Sandvik AB, headquartered in Stockholm, Sweden, has released its full-year financial results for 2023, reporting revenues up by 13% to SEK 126,503 million, compared to SEK 112,332 million in 2022. Total order intake saw a growth of 5% to SEK 125,011 million, up from SEK 119,196 million in the previous year.
Adjusted EBITA increased by 12% year on year to SEK 25,240 million, with an adjusted EBITA margin of 20.0%. Profit for the full year amounted to SEK 15,301 million, up from SEK 12,854 million in 2022.
“2023 was another successful year in our transformation as a company,” stated Stefan Widing, Sandvik President and CEO. “We continued to make progress in our strategy execution and took important investment decisions to strengthen Sandvik for the future. With the seven acquisitions made this year, we have further enhanced Sandvik’s presence in the customer value chain and improved our position in areas where we see long-term growth opportunities. Great innovations have also been introduced, some being the first of its kind in the industries we serve.”
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During the year seven acquisitions were completed. Sandvik acquired 95% of the shares in PMT Premier Machine Tools Limited. In addition, Sandvik acquired Polymathian, Norgalv and the remaining 70% of MCB Services and Minerals (MCB). MCB and Deswik, which Sandvik acquired in April 2022, have previously operated on a joint venture basis and Deswik acquired 30% of the shares in 2019. In August, the acquisition of Postability was completed. In November Sandvik acquired esco GmbH engineering solutions consulting and Buffalo Tungsten, Inc. in December.
“We made good progress during 2023 both operationally and financially. We reported record results and a strong cash conversion, despite challenging macro conditions. At the same time, we had a relentless focus on executing on our strategy and strengthened our position to capture growth opportunities ahead. These strategic accomplishments have been very important for the future success of the company and value creation for all Sandvik stakeholders. This is something to be proud of, and I want to close 2023 by extending a warm thanks to all Sandvik employees for another strong year,” Widing concluded.
Sandvik Manufacturing and Machining Solutions
Sandvik Manufacturing and Machining Solutions saw order intake increase by 6% to SEK 49,247 million and a 7% increase in revenue to SEK 49,340 million. The company reported a strong demand in aerospace and positive contribution from automotive, whereas general engineering was stable. While cutting tools divisions and the software business grew by mid-and high-single digits, respectively, powder declined year on year.
Sandvik’s acquisition of Buffalo Tungsten, Inc., a US-based manufacturer of tungsten metal powder and tungsten carbide powder primarily operating in North America, is expected to further expand Sandvik’s presence in the North American market and strengthen its regional capabilities in the component manufacturing value chain.
Sandvik Mining and Rock Solutions
Sandvik Mining and Rock Solutions reported that a solid demand for automation solutions translated to a record order for surface drill rigs, valued at SEK 248 million. The division saw order intake decline by 4%; at fixed exchange rates, the decline was 3%, of which organic -3%. Major orders amounted to SEK 1,150 million (excluding major orders, organic order intake declined by 5%). Equipment order intake declined by 10% and was flat for aftermarket.
The aftermarket business accounted for 64% of revenues whilst the equipment business accounted for 36%. The strongest organic order intake development was seen in South America (19%); Asia and Australia grew by 8% and 2%, respectively. North America reported a decline of 11%; Africa and Middle East, 21%.